Key facts
- China's domestic passenger-car retail sales are forecast to fall 22% to 18.5 million vehicles in 2026.
- The forecast is a downward revision by the China Passenger Car Association (CPCA).
- Weak consumer demand and reduced government incentives are weighing on the market.
China's domestic passenger-car retail sales are expected to fall 22% to 18.5 million vehicles in 2026, according to the China Passenger Car Association (CPCA). This forecast marks a downward revision as weak consumer demand and reduced government incentives impact the world's largest auto market. Carmakers are increasingly relying on exports, but this growth has not fully compensated for the domestic decline.